Questions
A mortgage broker is offering a 25-year $270,000 mortgage with a teaser rate. In the first...

A mortgage broker is offering a 25-year $270,000 mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 3.6 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 6.6 percent APR.

1) What are the monthly payments in the first two years?

2) What are the monthly payments after the second year?

P.s. Previous expert answered 1) 1,366.221 - and it was correct answer;

2) 1,823.38 (if you round it down to 2 decimal) - and this was an INCORRECT answer.

Please HELP!!!

In: Finance

Williams Corporation uses the balance sheet approach in estimating uncollectibles. At the end of the year,...

Williams Corporation uses the balance sheet approach in estimating uncollectibles. At the end of the year, Williams Corporation estimates that 2% of its accounts receivable of $1,000,000 will be uncollectible. Allowance for Doubtful Accounts has a debit balance of $1,000 before adjustment. What is the amount of the adjusting entry?
A.

$21,000
B.

$22,000
C.

$20,000
D.

$19,000

In: Accounting

Homework Problem 18_1 An analysis of HL Corporation suggests that in the next year the price...

Homework Problem 18_1

An analysis of HL Corporation suggests that in the next year the price of its stock will be either $50 or $30. The current price is $40. The 1-year riskless rate is 10%.

Consider a call option that expires in one year with an exercise price of $35.

a) The Replicating Portfolio is a portfolio of stocks and bonds that exactly replicates the payoff of the call option under all conditions, in this case the two states.

What portfolio of stocks (number of shares bought or shorted) and bonds (dollars borrowed/shorted or lent/long) that has same payoff if this Call option?

b) What is the fair value of this call? and why?

c) Create a riskless hedge with the call and stock. A riskless hedge is a portfolio of stocks and calls that have the same payoff in all conditions, in this case the two states.

For example, Write 1 calls and buy .75 shares or Buy 1 call and short .75 shares.

d) An arbitrage is a strategy that has all positive cash flows with no investment or negative cash flows.

How would you create an arbitrage if the Call were priced at $15?

e) How would you create an arbitrage if the Option were priced at $5?

In: Finance

Jonathan, a 34-year old male, undergoes a vasectomy and the doctor explains it was a complete...

Jonathan, a 34-year old male, undergoes a vasectomy and the doctor explains it was a complete success. However, two months later Jonathan returns angrily demanding to see the doctor. He explains that the vasectomy was unsuccessful because his wife is now pregnant. He is threatening to sue the doctor for malpractice.

a. Briefly describe a vasectomy procedure.

b. Provide an anatomical and physiological explanation for why his malpractice case will go nowhere.

c. How would this scenario be different if the patient were a female who had a tube ligation procedure?

In: Anatomy and Physiology

The Landers Corporation needs to raise $1.70 million of debt on a 20-year issue. If it...

The Landers Corporation needs to raise $1.70 million of debt on a 20-year issue. If it places the bonds privately, the interest rate will be 12 percent. Twenty five thousand dollars in out-of-pocket costs will be incurred. For a public issue, the interest rate will be 11 percent, and the underwriting spread will be 3 percent. There will be $110,000 in out-of-pocket costs. Assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 20-year period, at which time it will be repaid. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. For each plan, compare the net amount of funds initially available—inflow—to the present value of future payments of interest and principal to determine net present value. Assume the stated discount rate is 14 percent annually. Use 7.00 percent semiannually throughout the analysis. (Disregard taxes.) (Assume the $1.70 million needed includes the underwriting costs. Input your present value of future payments answers as negative values. Do not round intermediate calculations and round your answers to 2 decimal places.) private placement Public Issue Net amt to Landers ___________ _________________ Present value of future payments _____________ ______________ NPV ____________ ________________

In: Finance

The Gonzaleses filed their prior year federal, state, and local returns on April 12 of the...

The Gonzaleses filed their prior year federal, state, and local returns on April 12 of the current tax year. They paid the following additional taxes with their prior year returns: federal income taxes of $630, state income taxes of $250, and city income taxes of $75.

Using relevant tax laws and regulations, identify and explain the maximum depreciation deduction for Graham’s business.Complete tax forms for filing the Gonzales couple's tax return for the current tax year 2016. You will use 2016 tax return forms.

Prepare a tax memo addressing all tax positions taken for each item, citing relevant code and regulations to support each position. Please take the positions using tax law before the enacted Tax Cut and Job Act of 2017

In: Accounting

A travel association reported the domestic airfare (in dollars) for business travel for the current year...

A travel association reported the domestic airfare (in dollars) for business travel for the current year and the previous year. Below is a sample of 12 flights with their domestic airfares shown for both years.

Current
Year		 Previous
Year
345 315
526 475
420 474
216 206
285 275
405 432
635 585
710 650
605 545
517 547
570 508
610 580

(a)

Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period.

H0: μd = 0

Ha: μd ≠ 0

H0: μd < 0

Ha: μd = 0

     

H0: μd ≥ 0

Ha: μd < 0

H0: μd ≠ 0

Ha: μd = 0

H0: μd ≤ 0

Ha: μd > 0

Calculate the test statistic. (Use current year airfare − previous year airfare. Round your answer to three decimal places.)

Calculate the p-value. (Round your answer to four decimal places.)

p-value =  

Using a 0.05 level of significance, what is your conclusion?

Reject H0. We can conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.Reject H0. We cannot conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.     Do not reject H0. We cannot conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period. Do not reject H0. We can conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.

(b)

What is the sample mean domestic airfare (in dollars) for business travel for each year?

current $  previous $  

(c)

What is the percentage change in mean airfare for the one-year period? (Round your answer to one decimal place.)

  %

In: Statistics and Probability

The following was taken from the records of Smith Company in the year ending December 31,...

The following was taken from the records of Smith Company in the year ending December 31, 20X7. Journalize the following transactions in an Excel spreadsheet for year-end 20X7 using the aging method. Assume that the allowance for doubtful accounts has a beginning credit balance of $8,000 on January 1, 20X7. The assignment template is attached below.

Label the transactions below as journal entries #1 to #4, along with the dates of the entries:

February 20, 20x7: Wrote off Jones account: $250.

May 20, 20x7: Received $410 as partial payment on the $700 account receivable due from Garcia.

August 10, 20x7: Received $725 from Jones on the account written off on February 20, 20x7.

September 15: Wrote off the individual account receivables for the following customers as payment not expected in future: Tang: $400; Mulaka: $210; Quan: $375.

December 31, 20x7: Smith Company prepared the following aging schedule for it accounts receivables:

$120,000 of Accounts Receivable (A/R) are 0-30 days late: 3% probability of being uncollectible.

$30,000 of A/R are 31-60 days late: 10% probability of being uncollectible.

$14,000 of A/R are 61-90 days late: 20% probability of being uncollectible

$1,000 of A/R are later than 90 days late: 50% probability of being uncollectible

Instructions:

Using the Excel spreadsheet template provided for this assignment, submit the following items:

The four journal entries (1 to 4 above) with a one-sentence description for each

The T-account for the allowance for doubtful accounts

The journal entry to record bad debt expense

The balance sheet presentation of net realizable value, including gross accounts receivables of $29,500

Company Company- December 31, 201X
Journal# Date Account Title Debit Credit
a 20-Feb Allowance for doutful accounts
Jones- Accounts receivable
b
20-May Cash
Garcia-Accounts Receivables
c 10-Aug Cash
Allowance for doubtful accounts
d 15-Sep Allowance for doubtful accounts
Tang-Accounts Receivable
Mukala-Accounts Receivable
Quan-Accounts Receivable
Question 2
Dates T-Account for Allowance for doubtful accounts
Debit Credit
Begining balance
20-Feb
15-Sep
Bad Debt Expense=
Ending Balance
Calculations: Aging schedule
Days Late Accounts Receivable Amount Uncollection Probability Uncollectible Amount
Question 3
Date Account Title Debit Credit
31-Dec Bad Debt Expense
Allowance for doubtful accounts
Question 4
Balance Sheet Presentaion
Gross Accounts Receivables
Ending Balance of Allowance for Doubtbul Accounts
Net Realizable Balance

In: Accounting

Forecast the Balance Sheet Following is the balance sheet for Medtronic PLC for the year ended...

Forecast the Balance Sheet

Following is the balance sheet for Medtronic PLC for the year ended April 29, 2016.

Medtronic plc
Consolidated Balance Sheets
($ millions) Apr. 29, 2016 Apr. 24, 2015
Current assets
Cash and cash equivalents $2,988 $4,843
Investments 9,758 14,637
Accounts receivable 5,562 5,112
Inventories 3,473 3,463
Tax assets 697 1,335
Prepaid expenses and other current assets 1,234 1,454
Total current assets 23,712 30,844
Property, plant, and equipment, net 4,841 4,699
Goodwill 41,500 40,530
Other intangible assets, net 26,899 28,101
Long-term tax assets 1,383 774
Other assets 1,559 1,737
Total assets $99,894 $106,685
Current liabilities
Short-term borrowings $1,105 $2,434
Accounts payable 1,709 1,610
Accrued compensation 1,712 1,611
Accrued income taxes 566 935
Deferred tax liabilities - 119
Other accrued expenses 2,185 2,464
Total current liabilities 7,277 9,173
Long-term debt 30,247 33,752
Long-term accrued compensation 1,759 1,535
Long-term accrued income taxes 2,903 2,476
Long-term deferred tax liabilities 3,729 4,700
Other long-term liabilities 1,916 1,819
Total liabilities 47,831 53,455
Shareholders’ equity
Ordinary shares - -
Retained earnings 53,931 54,414
Accumulated other comprehensive (loss) (1,868) (1,184)
Total shareholders’ equity 52,063 53,230
Total liabilities and shareholders’ equity $99,894 $106,685

Use the following assumptions to forecast the company’s balance sheet for FY2017.

Forecasted FY2017 net income $5,151

million
Forecasted FY2017 net sales $36,274

million
Accounts receivable 19.3%

of net sales
Inventories 12.0%

of net sales
Tax assets 2.4%

of net sales
Prepaid expenses and other current assets 4.3%

of net sales
Long-term tax assets 4.8%

of net sales
Other assets 5.4%

of net sales
Accounts payable 5.9%

of net sales
Accrued compensation 5.9%

of net sales
Accrued income taxes 2.0%

of net sales
Other accrued expenses 7.6%

of net sales
Long-term accrued income taxes 10.1%

of net sales
Long-term deferred tax liabilities 12.9%

of net sales
Other long-term liabilities 6.6%

of net sales
Investments No change
Goodwill No change
Long-term accrued compensation and retirement benefits No change
Ordinary shares No change
Accumulated other comprehensive (loss) No change
CAPEX 3.6%

of net sales
Depreciation expense 18.9%

of prior year PPE, net
Amortization expense in FY2016 $1,931

million
Current maturities of debt due in FY2017 $1,105

million
Current maturities of debt due in FY2018 $6,176

million
Dividend payout ratio 60.5%

Round your answers to the nearest whole number.

Do not use negative signs with any of your answers.

Medtronic plc
Forecasted Consolidated Balance Sheet
($ millions) EST. 2017
Current assets
Cash and cash equivalents $Answer
Investments Answer
Accounts receivable Answer
Inventories Answer
Tax assets Answer
Prepaid expenses and other current assets Answer
Total current assets Answer
Property, plant, and equipment, net Answer
Goodwill Answer
Other intangible assets, net Answer
Long-term tax assets Answer
Other assets Answer
Total assets $Answer
Current liabilities
Short-term borrowings $Answer
Accounts payable Answer
Accrued compensation Answer
Accrued income taxes Answer
Other accrued expenses Answer
Total current liabilities Answer
Long-term debt Answer
Long-term accrued compensation Answer
Long-term accrued income taxes Answer
Long-term deferred tax liabilities Answer
Other long-term liabilities Answer
Total liabilities Answer
Shareholders’ equity
Ordinary shares -
Retained earnings Answer
Accumulated other comprehensive (loss) Answer
Total shareholders’ equity Answer
Total liabilities and shareholders’ equity $Answer

In: Accounting

A poll was taken this year asking college students if they considered themselves overweight. A similar...

A poll was taken this year asking college students if they considered themselves overweight. A similar poll was taken 5 years ago. Five years ago, a sample of 270 students showed that 120 considered themselves overweight. This year a poll of 300 students showed that 140 considered themselves overweight. At a 5% level of significance, test to see if there is any difference in the proportion of college students who consider themselves overweight between the two polls. What is your conclusion? Show all work and please make legible

In: Statistics and Probability